Can I Be Employed and Self-Employed at the Same Time?

Combining employment with self-employed locum work is one of the most common arrangements on Airlocum. It gives you the stability of a regular salary alongside the flexibility and earning potential of locum shifts. This guide explains how the two work side by side and what you need to know about tax.

How Does Tax Work When I’m Both Employed and Self-Employed?

The two income streams are taxed separately:

• Employed income — your employer deducts income tax and National Insurance automatically through PAYE. Nothing changes here.

• Self-employed income — you declare this separately to HMRC by filing a Self Assessment tax return each year. You pay income tax and Class 2/Class 4 National Insurance on your self-employed profits.

• Allowable business expenses — are deducted from your self-employed income before tax is calculated, reducing your taxable profit.

What Do I Need to Do?

• Register as self-employed with HMRC. You can do this online at gov.uk. It’s straightforward and free.

• Keep records of your self-employed income and expenses. Airlocum provides invoices for every shift, so your income records are handled. You’ll need to track your own expenses.

• File a Self Assessment tax return each year. The deadline is 31 January for online returns. You declare both your employed and self-employed income.

• Consider using a qualified accountant. An accountant who understands locum work can ensure you’re claiming everything you’re entitled to and filing correctly. Many locums find the cost of an accountant is more than offset by the expenses they help you claim.

What Expenses Can I Claim as a Self-Employed Locum?

Self-employed professionals can claim legitimate business expenses that reduce their taxable income. Common examples for locum dental professionals include:

• Travel costs and mileage to and from practices

• Parking charges

• Uniform and clinical clothing (including laundry)

• Professional indemnity insurance

• GDC registration fees

• CPD courses and professional training

• Professional body memberships

• A proportion of mobile phone and home office costs (if used for work)

Frequently Asked Questions

Do I need to tell my employer that I’m doing locum work?

Check your employment contract. Some contracts include clauses about outside work or require you to disclose additional employment. There’s no legal obligation to tell HMRC about your employer — they’ll see both income streams when you file your Self Assessment.

Will I pay more tax overall?

You pay tax on your total income from both sources. However, because you can deduct business expenses from your self-employed income, your effective tax rate on locum earnings may be lower than on your employed income. A qualified accountant can help you understand your specific situation.

When do I need to register as self-employed?

You must register with HMRC by 5 October in the tax year after you start self-employed work. For example, if you start locum work in June 2026, register by 5 October 2027. However, it’s best to register as soon as you start.

What if I only do a few locum shifts a year?

You still need to register as self-employed and file a Self Assessment return, regardless of how much you earn from locum work. Even occasional self-employed income must be declared.

Does Airlocum handle my tax?

No. As a self-employed professional, you’re responsible for your own tax affairs. Airlocum provides invoices for every completed shift, so your income records are straightforward — but filing your Self Assessment return is your responsibility.

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